KNOCK ON WOOD : We’re Looking at Real <i> Angst</i> Here

One of the questions surrounding Orion Pictures’ financial troubles is what would happen to Woody Allen, who has an unusual and longstanding relationship with the studio, if Orion goes under?

Charles Joffe, Allen’s longtime producer, said he has been assured that Orion currently has enough financing to distribute Allen’s next movie, “Shadows and Fog,” which features Madonna. The company recently received a much-needed cash supply, he noted.

But he acknowledged there is talk in Hollywood, or perhaps wishful thinking among rival film companies, that Orion might not be able to finance Allen’s next movie, which has been penciled in for shooting sometime this fall. “We should know in a few weeks or so whether they can afford to make the movie,” he said.

Joffe says that “while Orion is alive, I’ve avoided talking to anyone about this,” but that doesn’t mean studios haven’t gotten in touch with Joffe. Three studios have come forth seeking Allen’s talents--but Joffe would only acknowledge TriStar Pictures as one. He said the Walt Disney Studios had approached Allen awhile back, but observers said Disney would never give the director the freedom and control he has at Orion.

Allen’s ties to Orion are unusual in a town used to rapid realignments. Allen goes back 25 years with Orion’s chairman emeritus, Arthur Krim, who formerly headed up the late United Artists, which released two of the director’s best known movies, “Annie Hall” and “Manhattan.” After Krim formed Orion in 1978, Allen followed when his UA contract ended.

Joffe said the three studios have offered Allen the creative control he now has.

“No one reads Woody’s scripts at Orion, except maybe Krim,” Joffe said. “Should there be a parting of Allen and Krim, it would be a wrenching experience for both of them.”